Reverse FAQ's
What is a reverse mortgage?
A reverse mortgage is a loan available to homeowners aged 62 or older that allows you to convert part of your home equity into cash—without having to sell your home or make monthly mortgage payments.
Who qualifies for a reverse mortgage?
You must:
- Be at least 62 years old
- Live in the home as your primary residence
- Have sufficient equity in the home
- Maintain the home and stay current on property taxes, homeowner’s insurance, and HOA dues (if applicable)
Will I lose ownership of my home?
No. You retain full ownership of your home. The lender places a lien on the property, just like any other mortgage, but you or your heirs can repay the loan and keep the home.
When does the reverse mortgage have to be repaid?
Repayment is typically triggered when:
- You permanently move out of the home
- Sell the property
- Pass away
Your heirs can choose to repay the loan and keep the home, or sell the home and keep any remaining equity after the loan is paid off.
How do I receive the money?
You can choose how to receive the funds:
- Lump sum
- Monthly payments
- Line of credit
- Or a combination of these
This flexibility lets you tailor the loan to fit your financial needs.
Are there restrictions on how I use the funds?
No. You can use the money for any purpose—supplementing retirement income, covering healthcare costs, home renovations, or paying off debts.
What are the costs associated with a reverse mortgage?
Like any mortgage, there are closing costs, which may include:
- Origination fees
- Mortgage insurance premiums (required for FHA-insured HECMs)
- Appraisal and title fees
These can typically be financed into the loan so there’s little or no out-of-pocket cost upfront.
What happens if my loan balance exceeds my home value?
Reverse mortgages are non-recourse loans. You or your heirs will never owe more than the home is worth when sold, even if the loan balance exceeds the home’s value.
Can I still leave my home to my children?
Yes. Your heirs have the option to repay the reverse mortgage and keep the home or sell it and keep any remaining equity after the loan is repaid.
How is a reverse mortgage different from a home equity loan or HELOC?
Unlike traditional equity loans or HELOCs:
- There are no required monthly payments on a reverse mortgage
- Reverse mortgages are only available to homeowners 62+
- The loan is repaid when you no longer live in the home
Have More Questions?
Reach out directly for a confidential conversation about whether a reverse mortgage fits your situation. No pressure, no obligation—just clear answers.
